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1998-0616_ORTEGA PROPERTIES, INC_D12_Agenda Report AGENDA ITEM June 16, 1998 TO: George Scarborough, City Manager FROM: William M. Huber, Director of Engineering & Building SUBJECT: Consideration of Land Use Agreement for Stockpile at San Juan Creek (Ortega Properties) RECOMMENDATION It is recommended that City Council approve the Land Use Agreement with Ortega Properties for the Stockpile at San Juan Creek. SITUATION A. Summary and Recommendation Since the damages to San Juan Creek in 1995,the City has been utilizing private property for Creek related work and dirt/stockpiling in anticipation of receiving Corps of Engineers' approval to repair the lost embankment. Staff efforts with the Corps have taken longer than expected and in the intervening three years the economy has strengthened to the point where Ortega Properties has had interest in the development of the property. This development interest has led us to develop a formal arrangement with the owner to guarantee the property will be restored to its original state, including removal of the stockpile. The Agreement provides for the necessary assurances to the property owner and requires the stockpile be removed by October 30, 1998. B. Background During the winter storms of 1995,the City sustained substantial damage to San Juan Creek upstream of I-5. The City's Sewer& Water lines were severely damaged and a large section of the Creek's north embankment was severely eroded. The City was able to acquire a large amount of dirt from construction work on the San Joaquin Hills Transportation Corridor in an exchange for some enhanced soundwall treatments. As the dirt was needed to fill the creek's bank, the City allowed storage of the dirt on the adjacent parcel. Staff was led to believe by FEMA that the Creek restoration was needed urgently and could be done prior to the next winter season. As staff began to develop the design plans and preceded with the necessary approvals, it became apparent that the Corps of Engineers and Fish & Game approvals were not going to be immediate. FOR CITY COUNCIL ACM +/,', f D/2.- In addition the anticipated funding was withdrawn by FEMA leaving the City and many other agencies throughout the state to file appeals to get funding. While a number of appeals have been filed and reviewed, all have been rejected to-date by FEMA. As a result, the project has languished while funding appeals and grant applications were submitted to no avail. During the same period, staff worked to develop the necessary hydraulic and habitat studies for review and approval by the Regulatory Agencies prior to acquiring the necessary permits. Also during this same period,the economy has significantly improved to where the property owner(Ortega Properties) is getting serious interest in the property. The property owner has requested the City enter into an agreement to guarantee removal of the dirt so that a future owner is not encumbered. C. Land Use Agreement The Agreement(Attachment 2) specifically provides for the following key issues: 1. City will relocate existing temporary trail. 2. City will create a Grading Plan for the work on the property and perform soils testing. 3. City will remove dirt at owner's request if property is to be built upon. 4 City has until October 31, 1998 to complete the work, however, by mutual consent, the Agreement can be extended. 5. City will maintain security fencing. D. Regulatory Agency Permits Staff is working to get the Regulatory Agency permits so that work could be bid this summer for the work to repair the creek bank. However, this would require the City to fund the improvements at an estimated cost of$300-400,000. Since this project is for protection of the existing sewer facilities,the bank repair work is anticipated to come from the Sewer fund. City Council may wish to consider at some point in time whether they wish to proceed with the bank repair from City funds or do nothing and leave the bank in its current state. COMMISSIONBOARD REVIEW AND RECOMMENDATIONS N/A FINANCIAL CONSIDERATIONS The Agreement commits the City to remove the dirt and relocate a temporary bike trail, which, even without the Agreement,the City would have done. There has been some interest in the dirt for other developments which could reduce costs for the dirt's relocation. However, if the City has to move the dirt, the costs would be $200,000 +/-. PUBLIC NOTIFICATION Ortega Properties, Margaret Cogdell. ALTERNATE ACTIONS 1. Approve Agreement as presented 2. Do not approve Agreement 3. Refer to Staff for additional information. RECOMMENDATION It is recommended that City Council approve the Land Use Agreement with Ortega Properties for the Stockpile at San Juan Creek. Respectfully submitted, Ae,A William M. Huber Director of Engineering & Building WMH:ch Attachments: 1. Location Map 2. Agreement '**.•*.. - -:,-.-.:..--:.'-.-.,',•.;--.:,-;',..",'.:.:: .:..'-..,:--,E.:.-1' :* IN I l*i.s 4 - /.'3/4*'•• ., .. ..... ,.:. . ,...„ ..„,...... e --ro•--40•4•,,,••••,,,,,,,..,4 /441, Aftiv#44,.. . 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